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Resource centre on India's rural distress
 
 

Wheat Prices Zoom, Ration Offtake Falls -Subodh Varma

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The government appears to be blithely indifferent to the devastation caused by its food grain mismanagement.

The latest available data shows that the allocation of wheat for distribution through the Public Distribution System (PDS)— the ration system as it is known—has fallen dramatically this year. This has naturally led to a drop in offtake, that is, the distribution to needy families.

Till October 2022, 115 lakh tonnes of wheat was allocated from the central pool of food grains, of which, 103 lakh tonnes were distributed, according to the Food Grain Bulletin issued every month by the department of food and public distribution. Compared to 2021, 139 lakh tonnes had been allocated till October and 123 lakh tonnes distributed. 

Approximately, 80 crore people depend on the PDS for their food requirements and a decline in availability by around 16% over one year will cause immense harm to these families. The government has tried to replace some of the missing wheat with rice but the quality is reportedly not good, and in any case, people are not happy to undergo this coercive diet change.

Wheat Prices Rising

So, families are being forced to go to the open market to purchase wheat, or atta (flour), for their daily needs. Limited supply and increasing demand for wheat/atta in the open market has come as a boon for wholesale traders and middlemen. Despite a record harvest of wheat, its prices in the market have inexorably increased over the past two years, especially since the beginning of this year.

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